What to Do About GOOG

By Michael McDaniel
Chief Investment Officer

If you haven’t heard, Google is shaking up its stock with effectively a 2-for-1 stock split, but the new shares you get are a new class of stock called “C” shares. The move is designed to keep Google’s founders in voting control of the company for the long term, even as they issue more shares for acquisitions or employee compensation.

The result is a strange anomaly — while Google’s overall value won’t fall, the market data for their shares would show an overnight 50% drop, and can’t be adjusted using the normal system for splits.

As a result, we’re doing the adjustment manually, using a split-adjusted version of GOOG’s past history for both GOOG and GOOGL. Eventually, the fresh data for both stocks will be long term enough to allow us to remove this manual tweak and let the pure data feed speak for itself.

Disruptive innovation is generally a great thing for shareholders, but this is the kind of disruption that’s a little tougher to navigate! If you have questions, don’t hesitate to let our Advisor Success team know. We’re here to help.